FX.co ★ Analysis of Gold for August 03,.2020 - Ascending triangle pattern in creation and potential for upside trend continuation

"PBOC says that monetary policy will be more flexible, targeted in 2H 2020

These comments aren't new by the PBOC but it reaffirms their current monetary policy stance and that they will keep going forward with targeted RRR cuts when necessary to aid with liquidity, while also maintaining current credit conditions.

Again, for all the rhetoric China may tout about the recovery, what's more important is to watch for their policy measures and what local authorities are doing on the ground.

The level at $1,980 seems like solid resistance and decision level. I would watch for potential breakout of this level to confirm further upside continuation.

Further Development

Analyzing the current trading chart, I found that there is Ascending triangle chart pattern in creation and potential for the upside continuation.In case of the breakout of the $1,980, there is potential for the test of $2,045

1-Day relative strength performance Finviz

Based on the graph above I found that Gold is in the middle of the list, which is indication of the current flat mode (contraction)

Key Lvels:

Resistance: $1,980

Support level: $1,965 and $1,960